scholarly journals ABSORPTIVE CAPACITY: AN ANALYSIS IN THE CONTEXT OF BRAZILIAN FAMILY FIRMS

Author(s):  
GLORIA CHARÃO FERREIRA ◽  
JOÃO JOSÉ MATOS FERREIRA

ABSTRACT Purpose: The purpose of this study is to analyze the capacity of family firms to absorb relevant information from their surrounding environments, and incorporate it in their innovative activities. The study also seeks to improve our understanding if, and in what ways, the generational diversity in firm's management is an important resource. Originality/gap/relevance/implications: In spite of the relevance of this matter, few scholars have explored the relationship between absorptive capacity (Acap) and family firms. On the other hand, the economic importance of these firms is reported, for example, in Leone (2005) and Machado, Grzybovski, Teixeira and Silva (2013), authors reporting that approximately 90% of Brazilian firms are controlled by families, being the fastest-growing business segment. Key methodological aspects: The sample consists of 241 family firms. The SmartPLS software is used for structural equation modeling. Summary of key results: The results show that Acap is an important predictor for the innovation performance of family firms. Contrary to expectation, the involvement of several generations in the management of the family firms is not a significant moderator between ACAP and innovation performance. Key considerations/conclusions: This study fills an important gap in the research on family firms, once, by taking into consideration the generational diversity in the management of these firms, its results deepen our understanding of the essential features of a family business, and analyze the innovation in an intergenerational perspective.

Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Athambawa Haleem

Organizations needs knowledge creation capability and organizational forgetting to enrich their innovative performance in ever-changing business setting.The purpose of this article is to explore the influence of knowledge creation capability, organizational forgetting and absorptive capacity on Firm’s innovative performance. We test the model using Partial least squares structural equation modeling (PLS-SEM) to analyze empirical data collected from 194SMEs listed in Sri Lanka inventors’ commission.The findings of the study show that in addition to their individually positive impact of knowledge creation capability and organizational forgetting on firm’s innovative performance, the absorptive capacity mediates the relationship between knowledge creation capability, organizational forgetting and innovation performance. As one of the first studies to integrate the  capabilities of creating internal new knowledge and unlearning outdated knowledge for advancing firm innovativenessthrough the mediating effect of absorptive capacity. A major implication of this finding is that absorptive capacity enhances the effect of knowledge creation capability and organizational forgetting on firm's innovativeness and affects the types of innovation strategies adopted by firms.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyun Tian ◽  
Shuja Iqbal ◽  
Farooq Anwar ◽  
Shamim Akhtar ◽  
Muhammad Aamir Shafique Khan ◽  
...  

PurposeThis study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.Design/methodology/approachData were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.FindingsThe results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.Practical implicationsSMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.Originality/valueThis study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.


2015 ◽  
Vol 19 (05) ◽  
pp. 1550059 ◽  
Author(s):  
NATALIA RYZHKOVA ◽  
OSSI PESÄMAA

Knowing what customers want and how they use products contribute to company's innovativeness. Absorptive capacity (ACAP) is one theoretical construct that explains how companies gain information about customers and how such information is applied into practice. Yet, empirical evidence on the relationship between ACAP and knowledge from customers is still lacking. This study proposes and tests if customer collaboration is supported by ACAP and mediates the effect of ACAP on innovation performance. An established and previously validated second-order construct of ACAP is suggested to test these hypothesised relationships. Structural equation modeling (SEM) is applied to a sample of 120 selected gazelle companies that have had stable growth rates during the past three years to analyse the proposed relationships. The main finding of the study is that customer collaboration mediates the effect of ACAP on innovation performance.


2020 ◽  
Vol 17 (06) ◽  
pp. 2050040
Author(s):  
Alejandro Coronado-Medina ◽  
Jose Arias-Pérez ◽  
Geovanny Perdomo-Charry

This paper analyzes the mediating effect of absorptive capacity (AC) on the relationship between digital transformation from e-business capabilities (EBC) perspective and product innovation (PI). Structural equation modeling (SEM) was carried out with the survey data from a sample of firms that belong mainly to highly digitalized sectors. The results indicate the existence of a full mediation, which means knowledge derived from the digital operation of the business can only result in PI if AC plays an intermediation role. Hence, this finding calls into question the idea that digitalization alone and automatically acts as a PI driver.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.


2015 ◽  
Vol 77 (4) ◽  
Author(s):  
N. Hami ◽  
M.R. Muhammad ◽  
Z. Ebrahim

This study analyzes the causal relationship between sustainable manufacturing practice (SMP) and environmental sustainability as well as determines the mediating effect of innovation performance (IP) on the relationship between SMP and environmental sustainability. Adaptation from the changing business environment, manufacturing firms are facing great challenge on producing more products with less resource consumption, pollution emitted and waste generated. Using structural equation modeling, the survey data collected from 150 Malaysian manufacturing firms has been analyzed in this study. The empirical results show that both types of SMP have a positive and significant impact on environmental sustainability with external SMP is greater than internal SMP. However, there is no significant evidence to prove IP as a mediator for SMP-environmental sustainability linkage. The findings of this paper have important implication in both theoretical and practical perspectives. While provide better understanding of the phenomena by simultaneously analyzing a series of dependence relationships among SMP, IP and environmental sustainability, these results could help managers to understand the types of practices that would improve their environmental performance.  


2009 ◽  
Vol 22 (3) ◽  
pp. 239-253 ◽  
Author(s):  
Ritch L. Sorenson ◽  
Kenneth E. Goodpaster ◽  
Patricia R. Hedberg ◽  
Andy Yu

Based on the social capital, conflict, and ethics literatures, this study introduces a new concept, the family point of view, and provides theoretical arguments resulting in the following hypotheses: (a) The family point of view emerges from collaborative dialogue, which helps develop agreement to ethical norms; (b) the presence of ethical norms further helps cultivate family social capital; and (c) as a resource in a family business, family social capital is positively related to family firm performance. Using structural equation modeling, an exploratory test of 405 small family firms found support for all three hypotheses. The findings indicate a fully mediated relationship among collaborative dialogue, ethical norms, family social capital, and firm performance. The study not only highlights the importance of moral infrastructure in family firms but also helps clarify components of family social capital.


2021 ◽  
Vol 58 (1) ◽  
pp. 99-124
Author(s):  
Nazia Nazeer ◽  
Rajah Rasiah ◽  
Fumitaka Furuoka

Research on the web of technological linkages that stimulate firm performance is still evolving, especially when they differ with industry, timing and location. Generally, firms in emerging nations need technologies to build technological capabilities; however in some cases firms are limited in their capacity to acquire the technology because of their low level of absorptive capability. The rising share of resource-based textile exports, which exceeds clothing exports, demonstrate that little or no functional upgrading has taken place in the clothing and textile industry of Pakistan. Hence, using structural equation modeling we examine in this paper the mediating effect of absorptive capacity on the relationship between technological capabilities and technology transfer, and firm performance in a sample of 503 textile and clothing firms in Pakistan. The results show that, absorptive capacity mediates positively and significantly the relation between technology transfer, technological capabilities and firm performance with the former being stronger than the latter.


2019 ◽  
Vol 40 (3) ◽  
pp. 334-355 ◽  
Author(s):  
Yi-Ying Chang ◽  
Ian Hodgkinson ◽  
Paul Hughes ◽  
Che-Yuan Chang

Purpose The purpose of this paper is to examine the role of intermediate knowledge mechanisms on the participative leadership–employee exploratory innovation relationship using a distal mediation model. Design/methodology/approach Deploying a time-lagged questionnaire method implemented over four business quarters, data are generated from 1,600 responses in R&D units of Taiwanese technology firms. Findings The structural equation modeling results reveal that participative leadership is positively related to employee exploratory innovation; coworker knowledge and absorptive capacity partially mediate the relationship between participative leadership and employee exploratory innovation independently; and coworker knowledge sharing in combination with absorptive capacity partially mediates this relationship. Originality/value The findings contribute new knowledge on the relationship between participative leadership and employee exploratory innovation by uncovering intermediate knowledge mechanisms that augment this relationship.


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